20th Aug 2020 08:39
(Alliance News) - John Laing Group PLC on Thursday said its net asset value fell in the first half of 2020, with its Renewable Energy portfolio suffering amid lower power price forecasts.
The London-based infrastructure projects investor and active manager said its net asset value per share as at June 30 was 309 pence, down 4.9% from 325p a year before and an 8.3% drop from 337p at the end of December.
While the firm's Public-Private Partnership portfolio made a 3% positive contribution to NAV growth, its Renewable Energy portfolio made a 7% negative NAV contribution, including a hit from falling power price forecasts and changes to macro-economic assumptions.
The company declared a 1.88p per share dividend for the interim period, up 2.2% from 1.84p a year before.
Chief Executive Ben Loomes said: "The first half of 2020 has been challenging, and I would like to thank all of my colleagues for their hard work and commitment. The resilient performance of the [Public-Private Partnership] portfolio and continued good project delivery have been more than offset by challenges in the Renewable Energy portfolio as well as macro-economic factors. New investments in the period were minimal, with Covid-19 delaying public procurement processes, as well as the decision taken earlier this year to cease new investment in wind and solar generation.
"Nevertheless, I am confident in the outlook for the business. We are building good momentum in our pipeline of preferred and short-listed bidder positions in PPP projects, and the prospects for infrastructure investment are stronger than ever. At its core, John Laing has a differentiated greenfield projects platform with a strong long-term track record of creating value."
Loomes noted that a strategic review is underway, aimed at ensuring the company can capitalise on net investment opportunities and cultivate a "healthy future pipeline".
Shares in John Laing were down 3.0% at 295p in London on Thursday morning.
By Anna Farley; [email protected]
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